Will the XB1 go back to regular price after the Holiday?

[Nuvendil]

You ask as if the Xbox division will have a choice, which I highly doubt. The real power and money at Microsoft is not with the Xbox division and the investors and executives of the company as a whole more than likely are not interested in an original Xbox situation where all the Xbox division does is hemorrhage money for years on end. If we assume - and I think it is safe to do so - that the Xbox One was being sold at break-even or a small loss at $400, then that means that now they are losing at minimum $50 per sale. And possibly more, if they were taking a larger loss at $400. People say bigger install base means bigger profits in the long run, but you have to consider that if they lose too much money gaining that install base, the profits may not come in fast enough to offset the losses by the end of the gen.

No, I think that they will have no choice but to raise the price back up for a time to mitigate the damage. Their earnings report is already likely to be abysmal, but at least raising the price will keep it from being any worse. So I say, expect $400 again at least until summer, possibly next holiday and then the price will go to $350 permanently, as production costs will likely have decreased enough to cause the price to fall naturally.